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Residential Jewelry Store?

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Kim Thompson

Thread Starter
Freshman Member
Joined
Mar 3, 2005
Professional Status
Certified Residential Appraiser
State
Texas
I was asked to do a drive-by on a property. Pulled CAD records, appeared to be residential. Went out took the photo's. 1st floor Jewelry store with parking lot, living area above. Highest and best use is commercial (several buildings in the area are just like it). Told the Lender and they cancelled with a trip fee (woo-hoo). Now they call me up and want me to go out and figure out how much of the property is commercial and how much residential. I already told them they need a Commercial Appraiser. Is is ethical for me to accept the new assignment? They ordered it as a full appraisal, but sent an email asking me to go out and figure out the commercial percentage of the building. They are driving me crazy! They just don't want to fork out the money for a Commercial Appraiser. Any suggestions? Thanks.
 

GCJim

Senior Member
Joined
Dec 11, 2007
Professional Status
Certified General Appraiser
State
New Jersey
I would want to know the zoning of this particular property. The lender would need to have a commercial appraiser do this.
 

Kim Thompson

Thread Starter
Freshman Member
Joined
Mar 3, 2005
Professional Status
Certified Residential Appraiser
State
Texas
Its Houston, we are infamous....no zoning here.
 

GCJim

Senior Member
Joined
Dec 11, 2007
Professional Status
Certified General Appraiser
State
New Jersey
Its Houston, we are infamous....no zoning here.

STILL the Wild, Wild West!!!
In that case, let me please revise my previous answer: I believe if it is a commercial USE, methinks the lender should have a commercial appraiser do this one.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Kim ... my guess is you could consult with them, for a fee of course, and inspect the property in order to tell them the percentages. Beyond that I think it would have to fall to a commercial appraiser. My caution to you would be after they get the percentages (most likely to determine if they can lend on the property) they will have other questions that may lie outside your licensure level.
If you can get a fee for an inspection ... by all means do so. Just be careful as to what you do and say ... discussion of any value range etc. are certainly a no no .. but Im sure you realize this.
 

Kim Thompson

Thread Starter
Freshman Member
Joined
Mar 3, 2005
Professional Status
Certified Residential Appraiser
State
Texas
They are already asking questions that I cannot answer. The problem I am having is the engagement letter for the 2nd assignment request. They are requesting a 1004 for a residential property after I already sent them pictures and told them highest and best use. Am I asking for trouble just going out there and measuring the entire property and giving them the residential/commercial percentages. They said just go out there, give them their info and pay a cancellation fee ($50) when they finally cancel the order. I hate turning down any work, but don't want to seem as if I am misleading a Lender either.

Thanks
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
Kim,

If they really want to pay you to measure and report sf of residential versus commercial, you could accept that assignment but no way should you put it on an appraisal form. That would not be an appraisal. A letter report would suffice.

Don't let them push you into anything that would be beyond your license. Not even verbally.
 

GCJim

Senior Member
Joined
Dec 11, 2007
Professional Status
Certified General Appraiser
State
New Jersey
Kim ... my guess is you could consult with them, for a fee of course, and inspect the property in order to tell them the percentages.

Kim,
As above, I don't see anything wrong with measuring and supplying the percentages. DON'T give a value, don't even call it an appraisal, just call it a 'consultation assignment' for specific information only, supply the info as free-form text, and charge for your time / work.......
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
For what its worth Kim .. make sure you comply with the requirements of a consultation assignment and there is no way I would do this for fifty bucks. Your time is certainly worth more than that. If they dont agree .. refer them to a commercial appraiser. The more they ask the more nervous you should get ... and under no circumstances should you conclude as to highest and best use .. other than perhaps its not for residential purposes ... I would not tell them what it is for ... as you have not done the analysis. That is better left to someone else with the appropriate license level.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
They are already asking questions that I cannot answer. The problem I am having is the engagement letter for the 2nd assignment request. They are requesting a 1004 for a residential property after I already sent them pictures and told them highest and best use. Am I asking for trouble just going out there and measuring the entire property and giving them the residential/commercial percentages. They said just go out there, give them their info and pay a cancellation fee ($50) when they finally cancel the order. I hate turning down any work, but don't want to seem as if I am misleading a Lender either.

Thanks

Ms. Thompson,

Reject the order for the assignment and at the same time send them an engagement contract for consultation that you have prepared. You're just dealing with the clueless. Measuring the property is not that big of deal. But charge them $200. Don't sell yourself short. You could just measure the upper "residential" part and then state the county measurement says X Total... so your measurement Y / X = % of residential... they can assume the commercial.

I would not have even given them a H&BU statement like you did. I would originally only have informed them they have a mixed use property that I could not complete as a residential appraisal.

Webbed.
 
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